Copenhagen – Reducing food waste is not merely a matter of sustainability and ethics; it is a hard economic interest for the retail sector. A groundbreaking new analysis from the University of Copenhagen provides quantified proof that, for supermarkets, donating surplus food is often more financially profitable than discarding it. By implementing the right surplus strategy, retailers can not only save on waste management costs but also generate direct financial gains through timely pricing decisions.
The Alarming Statistics of Food Waste in Denmark
Although food waste has been a major focus for years, the problem in Denmark remains significant. According to 2023 figures from the Danish Environmental Protection Agency, the country’s total annual food waste is estimated at 881,062 tonnes. Of this massive volume, just under 103,906 tonnes originate from the retail and wholesale sector.
The retail sector discards more than 100,000 tonnes of food annually, even though a substantial share is still perfectly fit for human consumption. The research highlights the extreme disproportions in current practices:
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At least half of all surplus food in retail is thrown away.
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Bread, fruit, and vegetables account for 65% of the total surplus food.
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Most of the remainder is sold at a reduced price, while only a mere 0.1–0.2% is actually donated.
“There is a widespread perception that donating surplus food is mainly about charity. But our figures show that, in many cases, it is also the most financially sensible option for retailers once they have given up hope of selling the products,” stated Jørgen Dejgård Jensen, Professor at the Department of Food and Resource Economics at the University of Copenhagen and author of the study.
Early Discounts as the Most Profitable Strategy
The analysis found that implementing early price reductions in-store is, on average, the most profitable strategy. Professor Jensen explains that a price reduction of around 15%—applied a few days before the expiry date—is typically enough to ensure the products are sold, turning a potential loss into a real financial gain.
Based on the quantified data:
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For most product groups, reducing prices generates a net financial gain of around €0.3–0.8 per kilo, simply because more items are sold instead of ending up in the trash.
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For fresh meat, fish, and processed meat products, this financial benefit can be even higher, in some cases exceeding €1.3 per kilo.
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The only notable exceptions are liquid dairy products and dry goods, which rarely generate a surplus through price reductions.
Alternative Sales: Food Rescue Platforms
The analysis also examined sales via third-party food waste platforms, such as Too Good To Go. In some instances, utilizing these platforms can be even more profitable than donation. This model is most firmly established for fruit, vegetables, and bread, where it can generate net revenues of up to €0.5–0.7 per kilo. Researchers suggest there may also be untapped economic potential for such platforms regarding higher-value products like meat.
Disposal Costs More Than Donation
When products are too close to their expiry date to be sold, the mathematics clearly favor donation over disposal.
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It typically costs retailers around €0.27–0.36 per kilo in waste and handling costs to dispose of food.
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Conversely, donation costs average only about €0.14–0.23 per kilo.
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Therefore, choosing charity over the dumpster represents a direct saving of approximately €0.10–0.20 per kilo for most product groups.
“From the store’s perspective, it is often about choosing the least costly solution. […] In practice, there is little difference between putting food into a container for collection, for example for biogas production, and placing it on a pallet for a food redistribution organisation to collect,” added Professor Jensen.
Furthermore, the study highlights the immense social impact of this choice: donated food creates a social value of around €1–5 per kilo when it reaches vulnerable recipients via shelters, drop-in centers, and crisis centers.
Research Background and Future Steps
Supported by the VELUX Foundation and published in the Journal of Food Products Marketing, the analysis is based on an economic model detailing supermarkets’ incentives for managing surplus food. It combines 2019 industry data, interviews with retailers and food organizations, and publicly available accounting and price data.
The researchers conclude that reducing food waste and improving profitability are not conflicting goals; rather, they go hand in hand. Often, the main barrier is simply a lack of awareness: some products are thrown away because staff do not realize a better option exists. Overcoming this requires proper training to ensure retail employees know exactly how to handle surplus items smartly.
Verified Source:
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Original Institutional Press Release: University of Copenhagen – Less food waste: Supermarkets can save money by giving surplus food away
